Vivad se Vishwas is a scheme that the government has recently launched and is also shortly known as VSV. It is an act and not part of the finance act, unlike all other schemes of the past. The main objective is to reduce litigation and timely recovery of taxes by the Tax department. In recent times, the government has been blamed with being insensitive to business houses and a recent suicide by a Cafe Coffee Day founder added fuel to that fire. Therefore, the government announced this as a measure to help people who are affected by Tax-related cases to take the help of this scheme. To help our readers understand this scheme better, our Finance Head CA Eish Taneja worked out with CA Nitin Kanwar, and we are going to put in 5 series videos which are going to help you with a better understanding of the scheme.
Some essential pointers of the scheme are :
1. The scheme is estimated to recover around 1.5 lakh crore from this Act. Most importantly, these are all disputed cases
2. The specified date has been defined as 31/01/2020.
3. Litigation has to be pending on the specified date.
4. Appeal filed by condonation of delay will be accepted.
5. Miscellaneous Application filed with (Income Tax Appellate Tribunal) ITAT can be termed as appeal pending.
6. Matter set aside to Commissioner of Income Tax [CIT(A)] by ITAT will be called as pending appeal, but when the same is sent to Assessing Officer (A.O) for de novo assessment, then the appeal is not pending.
7. Writ filed with HC, though means appeal pending but going to VSV act or scheme depends on whether one can quantify the tax or penalty to go to this scheme.
The video answers specific questions which are in the minds of people in different industries:
The following questions are answered in this video
1. Why has this scheme come out as New Act, independent of finance Bill, unlike previous schemes?
2. What are the objectives of this New Scheme and whether the same to be kept in mind while interpreting the scheme?
3. What do you mean by a specified date and why it is important?
4. Whether appeal should be filed with condonation of delay with a respective appellate forum on or before 31st January 2020?
5. What is the status of Miscellaneous Application filed with ITAT on or before 31/01/2020?
6. What will be the status of ITAT order setting aside to:
a. To CIT(A)
b. Partially to CIT(A)
c. To A.O
Will this amount to pending litigation?
7. What is the status when writ has been filed with HC against jurisdictional Issue against the notice u/s 143(2) or 148, can the person go to this scheme?
8. What is the status of the writ filed, challenging the Reason to believe u/s 148, can the person go into this scheme?
Please feel free to reach out to us with your queries, and we will promptly share our replies.